20 U.S.C. § 1087i–2 — Temporary loan consolidation authority
submitted 16 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 374 words · no verdicts yet
A borrower with loans in at least two listed categories may temporarily combine those loans into one Federal Direct Consolidation Loan. Special interest-rate rules apply.
(a) Temporary loan consolidation authority. (1) In general. During the period in paragraph (3), a borrower who has one or more loans in at least two categories in paragraph (2), and who has not begun repaying at least one loan in any of those categories, may combine all of the borrower’s loans in those categories into a Federal Direct Consolidation Loan. (2) Categories of loans that may be consolidated. These are (A) loans made under this part; (B) loans the Secretary* bought under section 1087i–1; and (C) part B loans held by an “eligible lender,” a term defined in section 1085(d), not here. (3) Time period. The Secretary may make the loan if the application is received on or after July 1, 2010, and before July 1, 2011. (b) Terms of loans. The loan has the same terms and conditions as a loan under section 1087e(g), except that (1) for most such loans, section 1077a(l)(3) applies without rounding the weighted average interest rate up to the nearest one-eighth of one percent; and (2) if it repays a loan whose rate is set under section 1077a(g)(2), (j)(2), or (k)(2), its rate is calculated (A) using the applicable rate under that provision, respectively, and (B) under section 1077a(l)(3).
A borrower who has 1 or more loans in 2 or more of the categories described in paragraph (2), and who has not yet entered repayment on 1 or more of those loans in any of the categories, may consolidate all of the loans of the borrower that are described in paragraph (2) into a Federal Direct Consolidation Loan during the period described in paragraph (3).
The categories of loans that may be consolidated under paragraph (1) are—
loans made under this part;
loans purchased by the Secretary* pursuant to section 1087i–1 of this title; and
loans made under part B that are held by an eligible lender, as such term is defined in section 1085(d) of this title.
The Secretary may make a Federal Direct Consolidation Loan under this section to a borrower whose application for such Federal Direct Consolidation Loan is received on or after July 1, 2010, and before July 1, 2011.
A Federal Direct Consolidation Loan made under this section shall have the same terms and conditions as a Federal Direct Consolidation Loan made under section 1087e(g) of this title, except that—
in determining the applicable rate of interest on the Federal Direct Consolidation Loan made under this section (other than on a Federal Direct Consolidation Loan described in paragraph (2)), section 1077a(l)(3) of this title shall be applied without rounding the weighted average of the interest rate on the loans consolidated to the nearest higher one-eighth of 1 percent as described in subparagraph (A) of section 1077a(l)(3) of this title; and
if a Federal Direct Consolidation Loan made under this section that repays a loan which is subject to an interest rate determined under section 1077a(g)(2), (j)(2), or (k)(2) of this title, then the interest rate for such Federal Direct Consolidation Loan shall be calculated—
by using the applicable rate of interest described in section 1077a(g)(2), (j)(2), or (k)(2) of this title, respectively; and
in accordance with section 1077a(l)(3) of this title.
Source credit: (Pub. L. 89–329, title IV, § 459B, as added Pub. L. 111–152, title II, § 2206(b), Mar. 30, 2010, 124 Stat. 1075.)
- 2010Enacted · Pub. L. 89-329 · 124 Stat. 1075
A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 2010-03-30.
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